Easy ways to get a grip on your finances

Are you in serious debt?  Do you feel like you can’t handle the giant dept you have?  Instead of stressing yourself and worrying about what to do, you should use the tips in this article to repay your debt.  

Knowledge is power  

Is ignorance really a blessing? Not knowing how much you owe can make you feel less tensed, obviously because you don’t know how much you’re going to pay back. Knowing the amount of money you owe can be very depressing. Knowing how much you owe will prevent you from making unnecessary purchases.  

Call your credit card companies and other lending companies and ask how much money you owe. 

Evaluate your spending habit  

Once you know how much money you owe. You should do all you can not to add more to that total. This means that you have to cut down on movies, eating out, buying clothes etc. Think twice before spending or purchasing any item. Take time to look at what you have been spending money on and see where you can make cuts.  

Enlist family and friends to help you curb the bills of your spending. Tell them the details of your plan to pay off your debt. Since your family and friends have your best interest at heart, they will give you the money and hold you accountable.  



Start repaying your debt  

Create time to carefully look at your finances to see how much disposable income you have. Carefully allocate a certain amount of disposable income to pay your debt.  

You can determine your disposable income by subtracting your monthly income from your necessary expenses, what you have left is your disposable income. Use it to pay your debt. Make a strategic plan and stick to it and decide the amount of money you are going to be paying each month. Reward yourself for creating a payment plan, chill with family and friends. Just because you are in debt doesn’t mean you cannot have fun. Even athletes have cheat days. Do you know why they have cheat days? They know that working out and eating right is not going to make them happy always. So they enjoy themselves and eat what they love once in a while.  

Final note  

If you apply the tips listed above, you will be debt free and happy in no time. The key here is to create and implement a solid system that will work for you in the long term.

How to Earn More with Less Capital

If you ever studied Accounting, you would know that Capital refers to the investment value or start up costs for the business. The total of your Capital is equal to your assets less your liabilities. Some businesses have really high start up costs and require extensive funding to get off the ground. Others are much easier to fund because they may not require extensive initial start up costs but costs can grow as the business expands.

Save on Expenses

To get more out of your investment, you can save on expenses. Rather than renting a store front for a shop, consider setting up an online business. This way you don’t necessarily have to pay an employee and you don’t have to pay rent. You can pay as little as US$5.99 per month for hosting and can hire a freelancer to design your business web page.

This option is cheaper than renting a store front and paying utilities. If you have a garage or extra bedroom, you can store your stock there until they need to be delivered to customers. These initial savings could be reinvested into the business. This, however, may not work well for coffee or food businesses.


When your cash is limited, you need to budget. For a start up, the best budget they can have is a pessimistic one. Your sales are going to be slow and your expenses high. In some instances, you would barely or not even break even. Planning can help you see your goals on paper, tell you what needs to be improved and at the same time show you what costs needs to be minimized. If you realize that you are going to be spending more than you are making, look for alternatives that are cheaper.

Engage in Short Term Investments

One way to stretch capital is to make short term investments. These investments can be cashed out at any time and are not hard to liquefy. So put your money to work and earn yourself a little interest and dividends. You may even be surprised that there was an increase in the market value of your investment if you decide to sell them. These investments are relatively cheap and don’t require too much cash to buy them.

Change the Structure of the Business

When all else fails, change the structure of your business. By introducing a partner or even making the business a company, you are entitled to more capital. The partners will have to contribute financially or give of their time and talents and a company would introduce shareholders who would buy shares.

When you sell off your business like this, you are no longer accountable to yourself but to all investors. Investors generally expect to benefit from some return and an increase in their value. Profits have to be shared. The advantage though is that you do not sustain losses alone and you basically get more money to do more and build the business.